scholarly journals FINANCIAL SECURITY OF THE ENTERPRISE: AN ALTERNATIVE APPROACH TO EVALUATION AND MANAGEMENT

2021 ◽  
Vol 19 (02) ◽  
pp. 303-336
Author(s):  
Larysa Dokiienko

Purpose – The main purpose of the article is to justify an alternative approach to assessing the level of financial security of the enterprises based on use the model of modified and adjusted financial statements. Research methodology – The following methods of general theoretical and empirical research were used in the writing of the article: abstract-logical (when systematizing scientific publications on the problems of financial security management of enterprises), comparisons and grouping (when developing and validating a model of modified financial statements), coefficient (when considering and using models for adjusting modified financial statements), grouping (when clustering enterprises depending on the results of the analysis), formalization (when developing a matrix for diagnosing the level of financial security of enterprises), generalization (when formulating research findings). Findings – Based on an established sample from nine of sunflower oil production enterprises of Ukraine their modified financial statements have been developed, it was adjusted to the consumer price index, key financial indicators of the model have been identified and the level of their financial security over the past 7 years have been assessed. The research identified a direct relationship between the level of financial security of enterprises and key financial indicators: financial stability, solvency and financial risk. Also, the proposed methodological approach can be not only an important tool for diagnosing the level of financial security of enterprises, but also its forecasting. Research limitations – The research limitation is associated with sampling size and geographical scope. Also, the diagnostic results may differ depending on the chosen adjustment base, determination of adjustment method and selection of inflation measurement method for the modification financial statements. Practical implications – Practical use of the proposed model proves that it is a convenient, simple, understandable and effective tool for diagnosing the financial security level of enterprises in terms of the main components: financial stability, solvency, and risk. The use of the proposed approach to the assessment of the financial security of the enterprise can serve as an indicator of the overall efficiency of its management at sunflower oil production enterprises and as an informative tool for factor analysis. Originality/Value – Consideration of a significantly different, alternative approach that allows enterprises to quickly and easily diagnose the level of their financial security; to manage it effectively during the current period, and can also become the basis for the formation of strategic directions of financial development and forecasting of the level of financial security for prospective period.

2021 ◽  
Vol 12 (32) ◽  
pp. 70-86
Author(s):  
Gamlet Y. Ostaev ◽  
Inna A. Mukhina ◽  
Elena V. Alexandrova ◽  
Elena V. Belokurova ◽  
Lyudmila G. Titova

The current state of most of Russia's territories is such that the development rates of specific regions remain low. This phenomenon does not allow for sustainable long-term economic security. Therefore, it is necessary to develop measures to determine the financial stability of the individual regions and territories of the country for the purposes of their development under current conditions. In this sense, the real problem is to determine the financial indicators to assess the economic security of rural areas. This can be achieved through the formation of a scientifically based action algorithm aimed at improving the situation in rural areas. The research topic is the formation of a system to identify financial indicators in the evaluation of the economic security of rural areas. The theoretical and practical significance of solving problems related to the achievement of sustainable development in rural areas determined the choice of goals, objectives, object and theme of this study. Based on the above, the object of the study is the municipal budget and agricultural enterprises as the basis for the development of rural areas. The purpose of the study is to establish the methodology for evaluating financial security in rural areas as a financial management instrument at the municipal level. The following tasks were implemented in the course of the study: selection of financial indicators based on official and expert sources; Foundation of the mathematical apparatus to calculate the comprehensive and private indicators of the financial security of the territory using the principles of qualimetry (the science of measuring quality). The proposed methodology allows to systematize the financial and economic indicators, it serves as the main calculation of the financial and economic security of the Udmurt Republic; the methodology can also be applied to other rural areas of the country.


2021 ◽  
pp. 52-60
Author(s):  
Olha Kovalenko ◽  
◽  
Liudmyla Yashchenko ◽  

In the conditions of rapid changes in the modern market environment, it is extremely important for agricultural enterprises to respond in a timely manner to threats to their financial security. Therefore, economic diagnostics is of significant methodological importance, and makes it possible to learn about economic problems and interpret the results of enterprises activity that have certain deviations from the norm or the state required for the enterprise. The subject of the study is a set of theoretical, methodological and practical aspects of diagnosing the state of financial security of enterprises. The purpose of the article is to diagnose the state of financial security of agricultural enterprises on the basis of the proposed methodological approach and to substantiate proposals for its improvement. The methodological basis of the diagnostics used in the study was: methods of theoretical generalizations, financial analysis, scoring method, analysis of dynamics and structure, linear programming. The article reveals the tasks and areas of management of Ukrainian agricultural enterprises with an emphasis on the protection of their specific financial interests – ensuring liquidity, solvency, financial stability, autonomy and others. For research purposes all Ukrainian agricultural enterprises were classified on the size of the net income. The system of indicators for diagnostics of financial security of the agricultural enterprises was offered. The basic structural elements of the mechanism of financial security management were substantiated. According to the diagnosis results, it was found that the state of financial security of large enterprises in 2018-2019 has deteriorated and it has had a negative impact on their solvency. Instead, the financial security of small and medium-sized enterprises has improved. Based on the experience of developed countries, proposals for public policy instruments to promote financial security of agricultural enterprises were proposed.


Author(s):  
Volodymyr GriGorenko ◽  
Tetyana Kadylnykova

The article considers the basics of building systems for monitoring financial projects, which are based on an algorithm that determines the project actions, their sequence, the composition of the executors, funds and resources needed to perform these actions. The use of monitoring systems in the management of financial projects can minimize the risk of errors made in the early stages of development, and facilitates various project parameters. The main functions that will be performed by the system of monitoring financial projects are as follows: adding, editing, reviewing information of election financial statements, results of balance sheet items; registration, users, editing user information; authorization in the system using login and password; password recovery function; calculation of indicators of financial stability of the project; determination of financial stability of the project on the basis of financial indicators; adding, editing information in the project; view, edit information by the administrator about clients registered in the system. Creation and management of the system of monitoring of financial projects allow: to establish the necessity of construction and expediency of realization of the financial project; determine what types of work, in which departments of the organization and in what order they should be performed, by the financial project; choose the most rational version of the database and all types of its support (technical, software, information, organizational, linguistic, mathematical, legal); determine the optimal composition of methods and means of implementation about a particular organization.


Author(s):  
N. Hrynyuk ◽  
L. Dokiienko ◽  
О. Nakonechna ◽  
І. Kreidych

Abstract. The system diagnostics of enterprise financial security developed by the authors are based on taking into account the combined effect of the main elements of the financial stability management process. On the basis of the justification of the interdependence of the main components of an enterprise’s financial security (on the one hand, the types of financial stability and the liquidity of the balance sheet, on the other hand, their correlative effect on the level of financial security) the authors proposed a model for its evaluation. It has been proposed that the type of financial stability of an enterprise should be determined on the basis of the identification of the financial situation in accordance with the scale developed on the basis of the values of the main financial stability ratios. The type of liquidity on the balance sheet is based on a comparison of liquidity-based items of assets with maturities. The unified impact of types of financial stability and balance sheet liquidity on the level of financial security became the basis for the development a matrix for diagnostics the general position of financial security of the enterprise. Based on the established relationship between the degrees of financial stability and liquidity of an enterprise on the one hand, and the level of financial security of operating activities on the other, a model has been developed to assess the level of financial security of the enterprise’s operating activities. It has been proposed that the financial stability and liquidity of an enterprise should be determined on the basis of a three-tiered indicator by classifying financial situations within the established indicator scale: depending on the priority of selecting funds to finance the tangible portion of a negotiable asset and the sufficiency and composition of a negotiable asset to meet current liabilities. On this basis, a diagnostic matrix of the financial security position of the enterprise’s operational activities has been developed. The interconnection of the positions of the financial security of the enterprise and the unification of its level enabled the authors to develop a matrix of zones of the general position of the financial security of an enterprise where, depending on the combination of financial security levels, zones are distinguished from absolute financial security to financial danger. The testing of each element of the proposed enterprise financial security diagnostic’s system on the materials of a selected group of enterprises of the oil-and-fat industry confirms the practical significance of the developed tools in the process of managing their general financial security. Keywords: financial security, financial security level, financial security position, financial security of operating activities, financial stability, liquidity, oil-and-fat enterprises. JEL Classification G30, M20, Q14 Formulas: 14; fig.:5; tabl.: 4; bibl.: 22.


2020 ◽  
Vol 8 (1) ◽  
pp. 81-85
Author(s):  
Ekaterina Orlova ◽  
Al'fiya Imamutdinova

For effective growth in a market economy, it is necessary to properly manage the company's finances, including conducting a reliable and objective analysis of the company's financial condition based on complete and up-to-date information. The main source of such information is accounting reports. Therefore, it is necessary to be able to navigate the financial statements and financial indicators of the organization for the successful development of the enterprise


2020 ◽  
Vol 23 (11) ◽  
pp. 61-69
Author(s):  
Nataliіa Holiachuk ◽  
Olena Volot

Equity plays an important role in the activities of the enterprise because it constitutes an important element of its financial security. Accounting is an integral tool for the development of equity of the enterprise, because its organisation depends on the degree of efficiency of capital management. The study investigates the definitions of “equity” by Ukrainian scientists and their proposals and opinions regarding this category. The study considered the equity components, names sources of its development, as well as specifies the features of development of owner’s equity at state forestry enterprises. One of the areas of research was to study ways to analyse the effectiveness of the use of equity, which allowed to choose indicators of financial stability for the calculation. The efficiency of equity was analysed according to the financial statements of state forestry enterprises. Analysis of equity allowed to calculate indicators of financial stability for certain periods and compare them with data from different forestry enterprises. Calculation of coefficients of concentration of equity, financial dependence, financial stability, equity ratio, and borrowed funds are only part of the number of analytical indicators that can be used in the analysis of equity. Analysis of financial stability indicators showed that for management of enterprises it is necessary to monitor timely management decisions and the state of financial stability and creditworthiness, as well as pay attention to the structure of own and borrowed funds. The prospect of further research is to analyse the business activity and return on equity, as well as the construction of projected indicators of equity development and distribution of profits for various forestry enterprises


Author(s):  
Марина Сергіївна Татар ◽  
Анастасія Олександрівна Рикова

Modern globalization and integration processes, introduction of the latest information technologies, competition in the banking sector, increasing of foreign banking capital share, lack of comprehensive legal regulation of banking activities, lack of development of Ukrainian financial markets, tense criminal challenges lead to new threats to financial security of the banking sector in general and of individual banks in particular. In turn, the efficient functioning of the banking system is impossible without maintaining high level of financial security of each commercial bank. The aim of the research is deepening the theoretical and methodological foundations of commercial bank financial security assessing and to development practical recommendations for improving its level. The subject of the research is theoretical and methodological principles and practical aspects of analysis and assessment of bank financial security level . The methods of the research: logical and meaningful method, method of comparison, method of analysis and synthesis, method of expert estimation, method of coefficients, integral method, etc. The hypothesis of the research. The investigation of the current state of a bank's financial security should be conducted in several stages: questioning of typical (external and internal) threats to the bank's financial security; express analysis of commercial bank financial security level; calculation of the integral index of bank financial security level. The statement of basic materials. The survey conducted typical external and internal threats to bank financial security, the results of which showed that the investigated bank is protected from external threats to financial security by 60% (9 points out of 15 possible) and from internal threats by 100% (15 points out of 15 possible). In the second stage of the process of financial security research, express analysis of financial security was carried out on the bases of the coefficients method, which includes four groups of basic banking indicators: bank financial stability indicators, bank business activity indicators, bank liquidity indicators, efficiency of bank activity indicators. The results of the rapid financial security diagnostics showed that in 2014-2015 the bank had low level of financial security, and in 2016-2018 it was sufficient. In addition, the integral financial security index of the bank is calculated, including the following indicators: financial and economic standards, credit and deposit dollarization, banking performance (ROA, ROE), profitability indicators and others. Integrated financial security indicators show that the highest level of financial security was in 2016, and in 2018 it was sufficient. It also proposes measures to enhance various components of the bank's financial security, the practical implementation of which will improve the efficiency of managing of banking institution financial security. The originality and practical significance of the research is development an approach to assessing commercial bank financial security and implementation it on the example of Raiffeisen Bank Aval. Conclusions and perspectives of further research. The approach to the assessment of the financial security level is proposed, which involves carrying out the evaluation in several stages, namely, the questioning of external and internal threats to bank financial security, express analysis of the financial security level of a commercial bank and calculation of an integral indicator of bank financial security level, which makes possible to assess the bank financial security level. It also proposes measures to enhance various components of the bank's financial security, the practical implementation of which will improve the efficiency of managing of banking institution financial security. As part of the further study it is planned to evaluate the effectiveness of the proposed measures of bank financial security level increasing.


2021 ◽  
Vol 2 (517) ◽  
pp. 6-12
Author(s):  
O. O. Solodovnik ◽  

The present day global financial-economic crisis caused by the spread of the COVID-19 pandemic actualizes the problem of improving the basic approaches to assessing the economic and financial security of systems at all levels of management. The article is aimed at disclosing the essence and analyzing the main approaches to assessing the economic and financial security of the State, region, enterprises in order to substantiate the directions of improving the methodological basis for ensuring the economic and financial security of systems at different levels of management in accordance with the novel wave of challenges and threats. On the basis of research of scientific publications, the main approaches – the indicator and the functional – to the assessment of economic and financial security of systems at all levels of management are allocated and characterized; directions of their improvement are substantiated: expansion of the existing system of indicators by means of inclusion in its composition indicators of early warning of crisis phenomena in other spheres of public life that can undermine economic and financial stability; substantiation of scientific provisions on the use of the multiplier form of the integral indicator. It is proposed to improve the official approach to computing the level of economic security of Ukraine by including the ecological security indicators in the system of economic security indicators. The emphasis is placed on the need for further development of the scenario approach to the assessment of economic and financial security of the State, region, enterprise, which allows to obtain an assessment of the level of security of the research object in the medium and long term, with an average or high degree of uncertainty.


Author(s):  
I. Nastasiak ◽  
O. Baik ◽  
O. Zaiats ◽  
N. Mykhalitska ◽  
M. Veresklia

Abstract. The problem of elaborating the comprehensive state policy on regulatory and legal provision of the financial security at all levels of economy is significantly important for Ukraine. It is crucial to ensure development and implementation of the legislative framework that would determine the types of internal and external threats to the stability of financial activity and the means of counteracting these threats; the full power and responsibility of state authorities concerning the financial and legal regulation aimed at warranting order in financial sphere; the mechanism of financial control organization as the means of preventing financial offences. The aim of the research is to outline the essence of new threats to the economic and financial security of the state under modern economic conditions and search for the required mechanisms and means of regulatory and legal provisioning of the financial security of Ukraine. In the course of research, the general scientific and theoretical methods have been applied. These include systemic analysis (for defining the object and the subject of research); abstract and logical method (for preparing the scientifically justified generalizations and conclusions about the essence, the mechanism of provisioning financial security of the state, and the factors that designate it); graphic method (for representing visually the mechanism of ensuring financial security of the state). The article introduces improvements to the list of modern internal and external threats to the financial and economic security of the state with respect to the immanent nature of the World Band and the International Monetary Fund. It has been emphasized that the new list of indicators and sources of initial information about the constituent components of financial security should be developed and approved because the current list was outlined in the end of 2013 and does not take into account modern realia. It is necessary to determine the functions of the Ministry of Economy of Ukraine in the realm of monitoring and regulating financial stability of the state, particularly in the real economy sector. It has been specified that scientific development of the range of problems related to the methodology and legal regulation of the state security provisioning, as well as the means and methods of preventing and mitigating the threats, is tightly connected with the development of macroprudential supervision and regulation under the aegis of the National Bank of Ukraine. The introduction of new indicators by the Bank (such as the level of non-performing loans, the financial stress index, and others) is the positive step. Nonetheless, the large quantity of private indicators interferes the process of elaborating the set of measures for financial and legal regulation of the financial security level. The new methodological approach to development of the integrated indicator of financial stability at the macro level has been suggested. The research results enable the possibility of improving the mechanism of state financial security and justifying the set of measures for its reinforcement. The review and improvement of the current legal framework in the area of financial and regulatory economic security, and development of the new integrated indicator of financial security level are necessary. Keywords: financial security; internal and external threats; legal mechanism of security provision, macroprudential regulation. JEL Classіfіcatіon: О12, Е59 Formulas: 0; fig.: 2; tabl.: 1; bibl.: 16.


Author(s):  
Larysa Dokiienko ◽  
Nataliya Hrynyuk ◽  
Olena Nakonechna ◽  
Olga Mykhailyk

Purpose. The purpose of the article is to develop a system for evaluation the state of financial security of operating activities of enterprises in oil-and-fat industry based on the coordination of the interaction of the main factors of influence and levels of its components. Methodology / approach. In the process of writing the article the following research methods were used: abstract-logical (at the systematization of scientific publications on the problems of management of enterprises in oil-and-fat industry, financial security of enterprises), grouping (by clustering enterprises depending on the obtained results), comparisons (by developing a model for assessing the degree of financial stability of operating activities of enterprises), coefficient (by developing a model for assessing the degree of liquidity of enterprises), formalization (by developing a matrix for diagnostics of the state of financial security of operating activities of enterprises), generalization (by formulating research conclusions). Results. In the process of research, the system of complex evaluation of degrees and levels of the main components of financial security of the operations activities of the enterprises in oil-and-fat industry was substantiated: a model for assessing the financial stability of operating activities and a model for assessing the liquidity of an enterprise. A diagnostic matrix for the financial security status of the operational activities of the enterprises in oil-and-fat industry was developed to define the security boundaries of the operation activity of enterprises. Approbation of the proposed system for assessing the financial security of operating activities on the materials of the selected group of enterprises in the oil-and-fat industry made it possible to analyze the dynamics of the state of the financial security of their operating activities. Originality / scientific novelty of the research is to develop tools for a comprehensive evaluation of the financial security of the operating activities of the enterprises in oil-and-fat industry. The method of determining the impact of the degree of financial stability and liquidity of the enterprise on the level of financial security of current activities was improved. For the first time, a nine-quadrant matrix of the state of financial security of operating activities of enterprises depending on the ratio of the degrees of the above factors was substantiated. Practical value / implications. The use of the proposed system of financial security evaluation of operating activities of the enterprise, according to the authors, can serve as an effective mechanism for managing the financing current activities of enterprises in oil-and-fat industry and become an informative tool for factor analysis in managing their overall financial security.


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